Former Lululemon CEO Chip Wilson is once again faulting the troubled firm he founded, launching a campaign to change its board of directors.
Wilson, the controversial founder and second-biggest shareholder of Lululemon, revealed on Monday the nomination of three new directors, including past executives from ESPN and Activision, plus a former chief of rival On. The Wall Street Journal initially reported the proxy battle.
The clash began weeks after Lululemon announced the departure of its CEO, Calvin McDonald, concluding a tumultuous seven-year tenure. The athleisure brand lagged behind competitors by the end of McDonald’s term, and its shares diminished over 40% in value in 2025.
In a press release, Wilson stated that Lululemon “requires visionary creative leadership to thrive,” and current board members “lack these aptitudes.” He contended that new leaders are “essential to redefine Lululemon and start a new chapter of that company’s success.”
Wilson might not be solitary in his push for Lululemon control: Elliott Investment Management, a noted activist investment firm, has amassed a $1 billion stake in the company and is contending with management over installing former Ralph Lauren executive Jane Nielsen as its next CEO, the Journal relays.
Vancouver-based Lululemon did not immediately issue a response for comment.
Wilson also slammed the announcement of Lululemon’s CEO change, deeming it “a complete failure of board oversight with no clear succession plan,” and asserting that shareholders have lost faith in the existing board.
However, Wilson is not putting himself forward for the board he exited in 2015. Instead, he noted the changes aim “to return Lululemon to authentic creative leadership that will restore the brand to enduring strength.”
Lululemon is struggling due to escalating competition, a softening athleticwear market, and outdated apparel, observed Neil Saunders, GlobalData’s managing director and retail analyst.
“This is evident in the current collections, which aren’t particularly distinct, and where the company has shifted direction, it seems to be moving into a commoditization zone with brightly branded hoodies and tops that simply don’t align with the traditional elegance and quality of the Lululemon brand,” he wrote in a prior note.
Saunders told CNN on Monday that the company has “lost momentum” under the present administration.
“Wilson is not wrong to seek to inject new blood into the executive suite. The nominations comprise a good mix of expertise, though the primary challenge remains finding the right CEO,” he commented.
Wilson stepped down as CEO in 2005 and has routinely criticized company decisions. Last year, he faulted Lululemon’s diversity and inclusion efforts. In a 2018 CNN interview, he mentioned losing command of the company when it went public, suggesting its bureaucracy was stifling him.
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